Sometimes a new manager makes all the difference. Morningstar's Russel Kinnel dug up five promising funds that formerly suffered under old managers. Under new leadership, these funds have a lot of promise, but maintain a modest asset base.
- Harbor International Growth. This is an aggressive foreign fund, Kinnel writes, and despite weak 10-year numbers, it's been ahead of its benchmark since 2004 when James Gendelman took over.
- MFS Growth. At 4.1 percent, this fund's five-year annualized return barely beat it's 10-year loss of 3.9 percent. But, Kinnel writes the fund has posted above-average returns in every calendar year since 2002 when Eric Fischman took over as fund manager.
- TCW Small Cap Growth. This fund lost 55 percent between 2000 and 2005. Since then, it's gained 52 percent while the average small cap fund has remained flat. Kinnel credits new manager Husam Nazer 's strict sell discipline around cash-flow driven estimates of a stock's value as the reason for the fund's outperformance in the past four years.
- T. Rowe Price Global Stock. The fund has less than $1 billion in assets, but has been ahead of its peer group since 2005 under Rob Gensler's leadership.
- Morgan Stanley Mid Cap Growth. Dennis Lynch took over this fund in 2002. It lost 48 percent in 2008, but the $260-million fund gained 59 percent in 2009.
